Vaibhav Sanghavi, CEO of ASK Hedge Solutions, expressed a significantly improved outlook for the Indian market, stating that investor sentiment has turned much more constructive over the past two months. Speaking in an exclusive interview with BTTV on August 5, 2026, Sanghavi confirmed that ASK Hedge Solutions has shifted its overall portfolio to a net long position, signaling strong confidence.
Three Key Investment Themes
Sanghavi highlighted three primary investment themes he is bullish on:
- Financials: Led by private banks and Non-Banking Financial Companies (NBFCs).
- Data Centers: A medium- to longer-term 'pick and shovels' play.
- CDMO (Contract Development and Manufacturing Organizations): Poised to benefit from the BIO SECURE Act.
Factors Driving Positive Sentiment
According to Sanghavi, several negative factors that previously weighed on the market have now shifted to positive. He cited:
- Declining Oil Prices: The Middle East conflict had pushed oil futures to around $110, but prices have now seen a constructive decline to below $80. Sustained lower oil prices are expected to be favorable for the Indian economy.
- Robust Earnings and Valuation Correction: Despite earlier turbulence, corporate earnings have remained strong, and market valuations have corrected. India's relative premium to the broader emerging market basket has also sharply reduced.
- Renewed Investor Interest: International investors are re-evaluating India following recent developments in China, Taiwan, and Korea related to the AI trade. Positive Foreign Portfolio Investor (FPI) flows over the past month serve as evidence.
- Government Initiatives: Steps taken by the government regarding FCNR deposits, External Commercial Borrowings (ECB), and taxation on G-Secs are expected to contribute to greater market strength, a stronger rupee, and more favorable macroeconomic conditions.
Deep Dive into Specific Themes
Financials: A Strong Catalyst
Sanghavi identified financials, particularly private banks and NBFCs, as experiencing the biggest positive shift. He explained that developments around FCNR deposits could lead to cheaper deposits, increased system liquidity, reduced cost of funds, and support for net interest margins. Strong credit growth in recent quarters has also bolstered profitability, Return on Assets (ROAs), and Return on Equity (ROEs). Furthermore, FPI selling in financials has now subsided, with fundamentals remaining robust. The catalyst from FCNR-related lower deposit costs is expected to benefit the sector over the next one to two years.
Data Centers: The 'Pick and Shovels' Play
Beyond financials, Sanghavi expressed optimism for the data center theme from a medium- to longer-term perspective. He described this as a 'pick and shovels' investment, focusing on the essential components for building and setting up data centers. This includes segments such as diesel gensets, transformers, chiller equipment, electrical equipment, switch gears, and utilities. While some pockets within this theme might have higher valuations, Sanghavi believes continued growth will sustain their performance.
CDMO: Benefiting from BIO SECURE Act
The third area Sanghavi highlighted is Contract Development and Manufacturing Organizations (CDMOs). He anticipates strong performance in this sector, driven by the tailwind generated by the BIO SECURE Act. This legislative development is expected to create favorable conditions for CDMO companies.